The U.S. stock market as measured by the S&P 500 stock index, has trended down from a lower high.
The S&P is not yet oversold, and implied volatility is around 20%, which is the prior lows over the past year.
At the recent high, 60% of the stocks in the index were trending above their 200-day average and about 80% of the stocks were trending above their 50-day average, both of which have now turned down as an increasing number of stocks are trending down.
Trend lines aren’t magic; they’re just a general trend guide.
I’m not seeing heavy selling pressure, so we’ll see.
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